Hiring "Sales Reps" for an MLM

17 replies
Yes, I understand everyone has a different opinion of MLMs... THAT ASIDE.

I wanted to get some feedback on an idea of potentially hiring some part time "sales reps" to go out and promote and sign up for a network marketing business.

Would this idea work?

Potentially hiring 2-3 people at $8-10/hour part time to find prospects for the business. I wouldn't require them to sign up for the business itself (although, if they are going to be signing people up anyway, it would probably be a good idea so they make commission for themselves along the way)

I understand that there could be a downfall of just someone trying to milk the hourly and not signing any prospects.

This strategy may put me a little in the hole at first, but after a few signed prospects could pay itself off quickly.
#hiring #mlm #sales reps
  • Profile picture of the author mrozlat
    the hierarchy of door to door sales is like that of an MLM anyway... I would probably not bother telling the sales reps that it's an MLM... and pay them commission only... and don't have them go and and push the business opportunity... just the product as then they can ask the right qualifying questions and then close with the benefits what MLM is it?
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  • Profile picture of the author internetmarketer1
    There was just another thread I was posting on about finding sales agents regardless of the business idea. I do have to say that paying them an hourly rate, like the other people told me, would be a great way to help bring them in so they know there is money in the job, band then giving them commissions on the side for every sale they get you.

    Of course, you do want to be careful because others may take advantage of that hourly rate and not do as much as they know they could and they are just earning the hourly wage.

    You could do this: take the potential agents and make them land a minimum of 5 clients in the next two weeks. If they reach the quota, they receive $5 an hour plus the commission. If they reach another 5 in the next week, you bump it up to $6...and you just go on from there. This way, you don't pay them off straight away and you only get the experienced sellers who show you of their capabilities.

    I always say...give them incentives if you want to at the end of every month or bi-weekly to continue motivating them to work harder.
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  • Profile picture of the author Nforce1
    Good posts and ideas guys.. and thank you for taking the post seriously.
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  • Profile picture of the author jamesfreddyc
    Originally Posted by Nforce1 View Post

    Yes, I understand everyone has a different opinion of MLMs... THAT ASIDE.

    I wanted to get some feedback on an idea of potentially hiring some part time "sales reps" to go out and promote and sign up for a network marketing business.

    Would this idea work?

    Potentially hiring 2-3 people at $8-10/hour part time to find prospects for the business. I wouldn't require them to sign up for the business itself (although, if they are going to be signing people up anyway, it would probably be a good idea so they make commission for themselves along the way)

    I understand that there could be a downfall of just someone trying to milk the hourly and not signing any prospects.

    This strategy may put me a little in the hole at first, but after a few signed prospects could pay itself off quickly.
    You might want to check with the contracting company you are working with first as they may have disqualifying activities such as this.

    Aside from that, I have a real problem with this notion that you are wanting to hire hourly sales people to "promote" or sell others to "sign up" for this thing. This is the typical problem with MLM type models I've seen.

    Here's a very simple question you should ask yourself, and if you cannot provide a valid answer, then perhaps you should consider the overall involvement:

    If 100% of your revenue came from the sale of product, NOT from recruiting anyone, would your business hold up?

    If your answer is no, then you really need to consider exactly what you are doing, because anything but a "yes" to that question means you simply do not have a business. You are generating revenue from recruiting people into something.
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    • Profile picture of the author mrozlat
      Originally Posted by jamesfreddyc View Post

      If 100% of your revenue came from the sale of product, NOT from recruiting anyone, would your business hold up?

      If your answer is no, then you really need to consider exactly what you are doing, because anything but a "yes" to that question means you simply do not have a business. You are generating revenue from recruiting people into something.
      exactly... that is why i suggested promoting the product... it's a pyramid scheme otherwise
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      • Profile picture of the author jamesfreddyc
        Originally Posted by mrozlat View Post

        exactly... that is why i suggested promoting the product... it's a pyramid scheme otherwise
        But that is exactly what the OP is wanting to do!

        I wanted to get some feedback on an idea of potentially hiring some part time "sales reps" to go out and promote and sign up for a network marketing business.
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        • Profile picture of the author Claude Whitacre
          Millions of people have been in MLMs. Believe me, this isn't the first time this idea has been thought up. Has anyone, in any MLM, ever used this ideas profitably? If they have, copy what they did. If they haven't it's probably a bad idea.
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          • Profile picture of the author Nforce1
            Originally Posted by Claude Whitacre View Post

            Millions of people have been in MLMs. Believe me, this isn't the first time this idea has been thought up. Has anyone, in any MLM, ever used this ideas profitably? If they have, copy what they did. If they haven't it's probably a bad idea.
            I wanted to see if anyone had heard of this successfully being done. Or even not successfully being done, and for what reasons.
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            • pre paid legal:

              they paid upfront alot when they signed people up,

              so had a colleague tell me he did it years ago with a sales organization.

              didn't last because the selling was aggressive...
              getting upfront money (incentive to over sell,and lie, and not caring about the back end), consequently the drop out rate was very high, and prepaid legal stopped them from selling anymore.

              hope this helps
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        • Profile picture of the author mrozlat
          Originally Posted by jamesfreddyc View Post

          But that is exactly what the OP is wanting to do!
          relax buddy... he was/is looking for feedback on a potential idea

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          • Profile picture of the author jamesfreddyc
            Originally Posted by mrozlat View Post

            relax buddy... he was/is looking for feedback on a potential idea
            Relax about what?

            The OP is wanting to pay someone to do nothing but get "sign-ups". Not only is that not a legitimate business process, that is not a legitimate MLM business process! lol

            ...It defies the very definition of "Network Marketing" -- with the key word being "networking"
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  • Profile picture of the author misterme
    Originally Posted by Nforce1 View Post

    Would this idea work?

    Potentially hiring 2-3 people at $8-10/hour part time to find prospects for the business...

    I understand that there could be a downfall of just someone trying to milk the hourly and not signing any prospects.
    What caliber of people will you attract who want to work at $8 - $10 an hour? Are they walking up and down the street handing out flyers wearing a billboard?
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  • Profile picture of the author M Bissonnette
    It's not for me but there are a lot of pros and cons to review and consider.

    MLM's have produced a lot of six figure incomes then most other business models. A large amount of people have been involved with them and if they weren't successful then no one would be doing it.

    Two ideas to consider for pay structure based on what the business is:
    1. Low hourly rate with commission (15%)
    2. Just commission based but at a higher percentage (20-25%)
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    • Profile picture of the author Nforce1
      Originally Posted by M Bissonnette View Post

      It's not for me but there are a lot of pros and cons to review and consider.

      MLM's have produced a lot of six figure incomes then most other business models. A large amount of people have been involved with them and if they weren't successful then no one would be doing it.

      Two ideas to consider for pay structure based on what the business is:
      1. Low hourly rate with commission (15%)
      2. Just commission based but at a higher percentage (20-25%)
      This would most likely be the structure that I would be looking at.
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  • Profile picture of the author Tsnyder
    Originally Posted by Nforce1 View Post

    Yes, I understand everyone has a different opinion of MLMs... THAT ASIDE.

    I wanted to get some feedback on an idea of potentially hiring some part time "sales reps" to go out and promote and sign up for a network marketing business.

    Would this idea work?

    Potentially hiring 2-3 people at $8-10/hour part time to find prospects for the business. I wouldn't require them to sign up for the business itself (although, if they are going to be signing people up anyway, it would probably be a good idea so they make commission for themselves along the way)

    I understand that there could be a downfall of just someone trying to milk the hourly and not signing any prospects.

    This strategy may put me a little in the hole at first, but after a few signed prospects could pay itself off quickly.
    This idea has absolutely no chance of succeeding in a business model
    that is built 100% on the development of personal relationships.

    No chance.

    None.

    Nada.

    Zip.

    Zilch.

    Did I mention NO CHANCE?

    There are 2 or 3 basic skills that MUST be mastered for anyone
    who wants to succeed long term in MLM. Those who are unwilling
    to learn and apply those skills should just save their time and money
    and do something else.
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  • Profile picture of the author codyraymiller
    You'll make more money in the long-term by recruiting those sales reps into your business. (They'll make more money too.) In my opinion, this idea is not worth the cost and hassle. Just recruit and retail. That's how you build an MLM business.

    Blessings,
    Cody
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  • Profile picture of the author talfighel
    Originally Posted by Nforce1 View Post

    Yes, I understand everyone has a different opinion of MLMs... THAT ASIDE.

    I wanted to get some feedback on an idea of potentially hiring some part time "sales reps" to go out and promote and sign up for a network marketing business.

    Would this idea work?

    Potentially hiring 2-3 people at $8-10/hour part time to find prospects for the business. I wouldn't require them to sign up for the business itself (although, if they are going to be signing people up anyway, it would probably be a good idea so they make commission for themselves along the way)
    This is the first time I hear something like this. Personally, I think it is a waste of your time and money and I highly doubt that your upline will approve of this.

    You should connect with prospects yourself.
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